A years-long wait for a ramping up of nuclear power is about to end. Four new plants, adjacent to existing nuclear facilities in Georgia, Maryland, South Carolina and Texas, will begin cranking out electricity by 2016 or so. Uncle Sam is providing the facilities with $18.5 billion in low-interest loans set aside by the 2005 energy law.
The four new plants should add around 5,000 megawatts of nuclear-made power to today’s 100,000 MW, though that’s not enough to appreciably boost the industry’s 19.6% share of all electricity production from 104 existing nuclear generators. Later -- by 2030 or so -- as another 25 or so smaller nuclear plants are brought on stream, nuclear power’s share of the overall U.S. electricity market will grow to nearly 30%.
New nuclear power generators will do a lot more than pump more electricity into the grid. They’ll be in the forefront of a fleet of nuclear generators built by electric utilities to reduce their overall carbon dioxide emissions. This will be paramount after Congress enacts a climate change and energy bill that will restrict industrial CO2 emissions, making nuclear power plants all the more attractive.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Investors are sitting up and taking notice of nuclear power’s growing attractiveness. Since the plants emit no CO2, they would help power companies meet more stringent federal emission limits and even sell emissions credits to companies that fall short.
Of course, Wall Street will want to see the industry avoid the sort of cost overruns and other problems that occurred in the past. “It will be very important to demonstrate to financial markets and regulators that these facilities can be built on schedule and on budget,” says Adrian Heymer, senior director of new-plant deployment with the Nuclear Energy Institute, a trade group.
The 25 smaller plants -- ranging from a capacity of 125 MW to 300 MW -- remain in the wings, biding their time in hopes that Congress will offer incentives such as low-interest loans as part of the climate change and energy bill.
Storage of nuclear power plant waste isn’t likely to derail the startup of a new fleet of atomic plants. While future Congresses are likely to continue to debate whether to move ahead with a spent-fuel repository at Yucca Mountain in Nevada, highly radioactive material from existing plants can be safely sequestered for decades to come right at the plants.
Meanwhile, there’s technology on the drawing boards that holds the promise of reprocessing nuclear wastes into new nuclear reactor fuel, slashing the amount of “hot” wastes by 90% or more.
For weekly updates on topics to improve your business decisionmaking, click here.
-
Dow Sinks 301 Points on Trade War Talk: Stock Market TodayThe contentious relationship between the world's two biggest economies continues to drive global financial markets.
-
Top Places to Park $10K (or More) as Rates Start to FallWith more rate cuts upcoming, here are some smart places to maximize your savings on $10,000.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Apple Readies for AI Upgrade with New iPhonesThe Kiplinger Letter The tech giant has stumbled when it comes to artificial intelligence, but a new batch of iPhones will help it make headway.
-
Japan Enters a New Era of Risk and ReformThe Kiplinger Letter Japan has entered a pivotal moment in its economic history, undertaking ambitious policy and structural reforms to escape from decades of stagnation.
-
How Consumers Are Tinkering with Cutting-Edge AIThe Kiplinger Letter Companies launching artificial intelligence tools are jostling for consumer attention. Some products are already building a deep connection with users.
-
After Years of Stagnant Growth, Hope Emerges for EU EconomyThe Kiplinger Letter Can a German fiscal push outweigh French political peril?
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
How AI Puts Company Data at RiskThe Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
